Company Name: IEV HOLDINGS LIMITED
| Research House: UOB KayHian | Price Call: BUY | Target Price: 1.23 |
Shares of IEV Holdings jumped as much as 10.3% after the engineering company secured a two-year compressed natural gas supply contract from PT Unilever Indonesia Tbk.
IEV shares were up 8.1% at $0.735, having surged 56% so far this year.
PT Unilever, which manufactures home, personal care and food products, will buy more than 350,000 million metric British thermal units of CNG.
The revenue of more than US$5 million ($6.23 million) from the contract is expected to boost the net tangible assets or earnings per share of IEV for the current financial year ending December 2012, the company said in a statement.
UOB Kay Hian expects IEV to increase CNG processing capacity to 1.5 million mmbtu per annum this year from 1 million. It also forecast production to rise to 1.4 million mmbtu by the end of 2013 from 1 million in 2011.
“We see further earnings upside as we have not factored in gas volume growth and margin expansion arising from IEV's upstream expansion and gas concession,” UOB Kay Hian said, maintaining its buy rating and $1.23 target price on the stock.
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